Bills Digest No. 90 1997-98 Live-stock Transactions Levy Bill 1997

WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.

Date Introduced: 1 October 1997House: House of RepresentativesPortfolio: Primary Industries and EnergyCommencement: On the same day as Part 3 of the
proposed Australian Meat and Live- stock Industry Act 1997, that
is, on Proclamation or nine months and one day after Royal Assent,
whichever is first.

Under existing law a levy is imposed abattoir by the
Live-stock Slaughter Levy Act 1964 on lambs, sheep, goats
and buffalo (live-stock) slaughtered for human consumption at an.
The levy is payable by the person who owns the live-stock when
slaughter takes place.

The Primary Industries Levies and Charges Collection Act
1991 provides for the collection of the levy.

Proceeds raised by the levy are apportioned between the Meat
Industry Council (MIC), the Australian Meat and Live-stock
Corporation (AMLC), the Meat Research Corporation (MRC), the
Australian Animal Health Council Limited (AAHC), the Rural
Industries Research and Development Corporation (RIRDC), and the
National Cattle Disease Eradication Trust Account (NCDE).

The Live-stock Slaughter Levy Act 1964 is being
repealed by item 1 of Schedule 4 of the Australian
Meat and Live-stock Industry (Repeals and Consequential Provisions)
Bill 1997.

This Bill forms part of a package of 17 Bills restructuring the
regulatory framework of the Australian meat and live-stock
industry. Under existing levy and charge arrangements, funds raised
primarily go towards funding the MIC, AMLC and MRC. Under the
proposed arrangements the government intends that industry
contributions will be sourced on a statutory and non-statutory
basis. The collection of statutory levies is intended to be based
on the current system but with changes providing for a transaction
levy on sheep, lambs and goats, replacing the current livestock
slaughter levy, and a separate transaction levy on grain fed
cattle.

The rationale given by the Minister in the Second Reading Speech
to the Australian Meat and Live-stock Industry Bill 1997 for the
transaction levy approach is:

The transaction levy approach for sheep, lambs and goats was
adopted at the request of a clear majority of industry whose
submission met all of the requirements of the government's levy
principles. A similar request was also submitted by the grain fed
cattle industry sector for a separate cattle transaction levy.
Again this submission met each of the Government's levy
principles.

The existing levy and charge imposition Acts have been modified
to provide for clear sectoral ownership.(1)

In relation to non-statutory contributions, the government is
setting the processor and exporter levies at zero. It should be
noted that the Minister in the Second Reading Speech to the Bill
issues a warning in respect of such contributions, that is:

Should the non-statutory contributions by processors and
livestock exporters fail to meet agreed funding levels for joint
industry functions, and as specifically agreed by these two
sectors, the Government has their prior agreement to maintain
levies at a required level to ensure there is adequate
funding.(2)

Under the proposed arrangements, the Government intends that
decisions on levels of levies and charges be the responsibility of
the peak industry councils.

In respect to this Bill, the Minister in the Second Reading
Speech to the Australian Meat and Live-stock Industry Bill 1997
states:

The Live-stock Slaughter Levy Act 1964 will be replaced
by a Livestock Transactions Levy Act and a Livestock Slaughter
(Processors) Levy Act, to allow for the separation of producers'
and processors' funding and for the processors' funding to move to
zero levy rates.(3)

The reader is also referred to the Digest for the Australian
Meat and Live-stock Industry Bill 1997.

Ian Ireland
4 November 1997
Bills Digest Service
Information and Research Services

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Published by the Department of the Parliamentary Library,
1997.

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Last updated: 12 November 1997